Citi Has Buy Rating On Leap Wireless Following Earnings (LEAP)

Citi Investment Research has a Buy rating and a $19 price target on shares of Leap Wireless International Inc LEAP following earnings. In a note to investors, Citi writes, "Leap reported solid 1Q results that showed progress at transitioning its customers to higher ARPU Smartphones & its all-inclusive rate plans, while continuing to digest the costs of an accelerated device replacement cycle and increasing awareness for its new rate plan structure. Revenue of $780 mil. was above CIRA/consensus of $762/$739 mil on better net adds of 331k vs. our 300k est. & stronger ARPU of $40.02 vs. our $39.48 est. Norm. OIBDA of $113 mil. edged out consensus, albeit below our est. on higher device replacement costs /CPGA." Shares of LEAP are up 93 cents in pre-market trading to $16.00, a gain of 6.2%.